It seems that Yahoo is putting a lot of "non-superstar" players on the can't cut list.
From Yahoo:
When a player is on the list, he cannot be waived from a team under any circumstances. The "Can't Cut" list, which will be updated when necessary, will prevent managers at the bottom of the standings from changing the league dynamics by waiving all of their outstanding players.

As commissioner, I can either make all players available to cut, or I can use Yahoo's settings. Those are the only options.

I'm willing to kill the can't cut list entirely, but if I see a lot of questionable trades or drops later in the season I will block them.